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View Diary: If the Euro fails. (282 comments)

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  •  webranding, Q: is this just one more reason (2+ / 0-)
    Recommended by:
    G2geek, loftT

    to get out of the banks and move to a credit union?

    I am not speaking here of the other good reasons to do this, but if these other banks did need a bailout with a euro failure, would they honor our deposits?  What do you think?  

    I belong to the “US” of America, not the “ME,$,ME,$,ME,$,ME,$” of America!

    by SeaTurtle on Sun Nov 27, 2011 at 12:47:49 PM PST

    [ Parent ]

    •  Deposits up to 250k are insured federally (2+ / 0-)
      Recommended by:
      beforedawn, Odysseus

      so you wouldn't have to worry about getting your money.  Although BofA has moved a lot of their toxic assets to the subsidiary that has those insured accounts so when they go bad there will be a back door bailout.

      There revolution will not be televised. But it will be blogged, a lot. Probably more so than is necessary.

      by AoT on Sun Nov 27, 2011 at 04:16:35 PM PST

      [ Parent ]

      •  Actually, you might. The reality is that if (1+ / 0-)
        Recommended by:

        the big banks fail, the FDIC will have to go to Congress for a bailout.  That could take a week to a couple of months of arguing in Congress to happen.  Even if it was taken care of immediately it would still take time to print millions to tens of millions of physical checks.  I would say that a hopelessly optimistic timeframe is a week or two (that assumes Congress has already authorized a FDIC bailout, the FDIC can quickly export the depositor information in a format their systems can handle, and the printing presses are ready to run with plenty of ink and blank checks).

        There is no saving throw against stupid.

        by Throw The Bums Out on Sun Nov 27, 2011 at 06:20:50 PM PST

        [ Parent ]

    •  Credit union funds are insured (0+ / 0-)

      by the NCUA to $250,000, and in another Daily Kos diary in the last month a poster noted that the NCUA is in far more solid shape than FDIC.

      The problem with FDIC is that the banks are supposed to contribute to it on an ongoing basis; well before 2008 they decided everything had been going so well, the funds so seldom drawn on, the chances of needing FDIC to be fully funded so dim, that they no longer contributed or made only token payments.

      Besides, if there should be a 'run' on the FDIC, where would the money come from to stop or contain it?

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